Bloomberg Confirms its BSBY Short-Term Credit Sensitive Index Adheres to IOSCO Principles

News provided by

Apr 06, 2021, 10:30 ET

NEW YORK, April 6, 2021 /PRNewswire/ -- Bloomberg today announced that an independent assurance review of the Bloomberg Short-Term Bank Yield Index (BSBY) confirmed that the short-term credit sensitive index adheres to the International Organization of Securities Commissions' (IOSCO) Principles for Financial Benchmarks. The review was conducted by a global, independent accounting firm and the final report is expected to be available shortly.

"Alignment with the IOSCO Principles is an important milestone, and recognizes BSBY adheres to industry best practices," said Steve Berkley, CEO of Bloomberg Index Services Limited (BISL) at Bloomberg. "An increasing number of financial institutions and corporations are looking to BSBY for their loan products as they transition away from LIBOR, and we will continue to support their needs as they work to ensure compliance with regulatory timelines."

Market participants are invited to register for a virtual information session on BSBY on April 8.

BSBY includes a term structure and systemic credit-sensitive spread, which may be used to support the market's transition from IBOR benchmarks to risk-free rates. BSBY is available as a standalone rate, and can also be used to supplement Term SOFR. Bloomberg began publishing BSBY on an indicative basis in October 2020.

BSBY will be calculated daily and published at 8 AM ET, using the prior day's transaction data, on a T+1 basis. The index can be accessed via the Bloomberg Terminal, and will be posted publicly on Bloomberg.com on a delayed basis. The index is available for 5 tenors: overnight (BSBYON), 1-month (BSBY1M), 3-months (BSBY3M), 6-months (BSBY6M) and 12-months (BSBY12M). Additional detail on the BSBY methodology can be accessed here.

Bloomberg Index Services Limited (BISL), an authorized benchmark administrator and subsidiary of Bloomberg, is licensing BSBY for use as a financial benchmark. In addition to BSBY, BISL administers the Bloomberg Barclays flagship family of fixed income indices, the Bloomberg Commodity Index (BCOM), and Bloomberg's Global Equity Index family. BISL provides robust governance and oversight over its benchmark offerings, which will soon include a dedicated oversight function for BSBY composed of a balanced set of market stakeholders.

While initially offered in the U.S., BSBY will soon be available for licensing in additional jurisdictions, including the U.K. and the EU.

About Bloomberg
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company's strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Terminal. Bloomberg's enterprise solutions build on the company's core strength: leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit Bloomberg.com/company or request a demo.

SOURCE Bloomberg